Pakistan: issues to solve, tax base, the way public spending is being directed

Pakistan is in discussions with the International Monetary Fund (IMF) on a potential follow-up program to its nine-month, $3 billion stand-by arrangement, IMF chief Kristalina Georgieva said on April 11. Speaking in Washington, Georgieva said Pakistan was successfully completing its existing program with the IMF and was now “turning to the fund for potentially having a follow-up program.” But she said that it had important issues to solve, including “the tax base, how the richer part of society contributes to the economy, the way public spending is being directed, and of course, creating…a more transparent environment.”

[January 30 2023 IMF Mission Chief arrives ]

The in-person Fund mission is scheduled to visit Islamabad from January 31st – February 9th, IMF mission chief for Pakistan Nathan Porter had already arrived in Islamabad to start a technical discussion with authorities on Tuesday (today), which would continue till Friday (Feb 3).

The technical discussions will start from Tuesday and it will continue till Friday. A source inside the Ministry of Finance said that during the technical negotiations, both sides will exchange information.

He further added that the policy level talks between both sides start from next Monday. The Pakistani Finance minister, Secretary Finance, Chairman FBR and Governor State Bank of Pakistan will participate in these meetings.